SCHEDULE: Major Shareholder Group Amends Credit Acceptance Stake, Discloses Recent Dispositions

A group of significant shareholders, including Prescott General Partners LLC and Thomas W. Smith, filed an Amendment No. 13 to their Schedule 13D, detailing updated beneficial ownership in Credit Acceptance Corporation and recent share transactions.

Summary

• Prescott General Partners LLC (PGP) beneficially owns 1,436,951 shares, representing 12.4% of Credit Acceptance Corporation's common stock.
• Prescott Associates L.P. beneficially owns 911,132 shares, representing 7.8% of the common stock.
• Prescott Investors Profit Sharing Trust (PIPS) beneficially owns 41,437 shares, representing 0.4% of the common stock.
• Thomas W. Smith beneficially owns 662,295 shares, representing 5.7% of the common stock.
• Scott J. Vassalluzzo beneficially owns 68,158 shares, representing 0.6% of the common stock.
• The aggregate of 1,576,044 shares held by the Managed Accounts (Partnerships, PIPS, and certain managed accounts) were acquired to achieve investment goals.
• Funding for previous common stock purchases included $20,460,710.82 from Managed Accounts, $990,322.17 from Mr. Vassalluzzo's personal funds, and $8,248,216.57 from Mr. Smith's personal funds.
• On July 2, 2025, Prescott Associates distributed 42,329 shares in kind to a limited partner, valued at $509.43 per share based on the June 30th closing price.
• Between May 7, 2025, and May 12, 2025, the reporting persons collectively disposed of 75,990 shares through open market sales at prices ranging from $494.9196 to $499.8406 per share.
• On June 4, 2025, Scott J. Vassalluzzo acquired 410 shares through the vesting of restricted stock units under the Issuer's Incentive Plan.

Sentiment

Score: 5

Explanation: The sentiment is neutral. While there are significant dispositions by the reporting group, the stated purpose remains focused on maximizing shareholder value, and the filing is primarily a disclosure of ownership changes rather than operational performance.

Positives

• The reporting persons' stated purpose is to achieve investment goals and maximize shareholder value.
• Scott J. Vassalluzzo, a director of the Issuer, received 410 shares from the vesting of restricted stock units, indicating continued alignment with company performance incentives.

Negatives

• The reporting group engaged in significant dispositions of shares totaling 75,990 shares across multiple transactions in May 2025.

Risks

• Future purchases or sales of common stock by the reporting persons are subject to market conditions, availability of funds, and evaluation of alternative investments, which could introduce volatility.

Future Outlook

The reporting persons may purchase or sell additional shares of Common Stock in the future, depending on market conditions, fund availability, and evaluation of alternative investments. They may also engage in discussions with the Issuer's management, board of directors, and other shareholders to develop strategies aimed at maximizing shareholder value, though no specific plans for actions enumerated in Item 4 of Schedule 13D are currently in place.

Management Comments

• The reporting persons acquired shares for the purpose of achieving the investment goals of the Managed Accounts.
• The reporting persons may talk or hold discussions with various parties, including the Issuer's management, its board of directors, and other shareholders and third parties, for the purpose of developing and implementing strategies to maximize shareholder value.

Industry Context

This filing is a routine disclosure of beneficial ownership changes by a significant shareholder group in Credit Acceptance Corporation, a company primarily involved in subprime auto lending. The document itself does not provide broader industry trends or competitive analysis, focusing solely on the reporting persons' investment activities and intentions.

Corporate Governance

Related Party Transactions

• Prescott Associates distributed 42,329 shares of Common Stock in kind to a limited partner in partial satisfaction of a withdrawal request.
• Messrs. Smith and Vassalluzzo manage investment accounts for certain family members and a private charitable foundation established by Mr. Smith, which are included in the 'Managed Accounts' and represent related party investment activities.

Stakeholder Impact

• Shareholders: Changes in significant ownership stakes and the stated intent to maximize shareholder value could influence investor sentiment and potential strategic directions.
• Management/Board: The reporting persons' intent to engage in discussions with management and the board could lead to strategic collaborations or potential activist pressure.

Next Steps

• Potential future purchases or sales of Common Stock by the reporting persons based on market conditions and investment opportunities.
• Discussions with Credit Acceptance Corporation's management, board of directors, and other shareholders to develop strategies for maximizing shareholder value.

Key Dates

Keywords

Credit Acceptance Corporation, CACC, Schedule 13D, beneficial ownership, Prescott General Partners, Thomas W. Smith, Scott J. Vassalluzzo, shareholding, investment, SEC filing, auto finance, share dispositions, restricted stock units